The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
American equities go down, as bonds yields add on jobs data
On Friday, American equities headed south, suppressed by ascending Treasury yields after data disclosed that job surge speeded down in September, while wage leaps weren’t enough to fan fears over ascending inflation or faster interest rates lifts.
The losses were led by heavyweight equities in the technology as well as communication services sectors. Among them one should mention the representatives of the FAANG group, including Amazon, Facebook, Netflix, Alphabet, Apple.
As a matter of fact, Apple lost by 2.7%.
Twitter headed south by 0.5%, giving up earlier profits after Greenlight told it sold the whole stake in the company because of fears about regulatory risks impacting social media companies. As for Facebook, its equities lost by 1.2%, and Snapchat-parent Snap declined by 1.7%.
It contributed to the pressure on the stock market from earlier in the trading marathon after the September jobs data.
As for nonfarm payrolls, they rallied less than anticipated in September, probably because of the effect of Hurricane Florence, although data for August and July was updated upwards, as a Labor Department report disclosed.
Apparently, the report pushed longer-dated American Treasury profits up. It put more pressure on American equities that are fluctuating close to record-high levels, thus driving fears that valuations with the earnings season are over there.
The technology sector SPLRCT headed south by 2%, sinking for the consecutive day in a row because it also took a hit from a dive in equities Microsoft and Intel.
The communication services sector SPLRCL declined by 1.5%.
The Dow Jones Industrial Average declined by 1.04% hitting 26,350.95, while the S&P 500 decreased by 0.96% reaching 2,873.72.
The Nasdaq Composite slumped by 1.86% reaching 7,733.07, which is its lowest outcme since mid- August.
Moreover, the CBOE Volatility index headed north by 2.48 points.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
Will coronavirus continue keeping the markets in fear? What releases should we wait for? Find out in the news!
RBA Rate Statement is released on Tuesday at 07:30 MT time.
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Today the US nonfarm payroll data will be reported that could cause fluctuations of the market.